Exemptions u/s 10 of Income Tax Act
Here we will go through some of the basic exemption u/s 10 of Income Tax Act.
Leave Travel Concession
Exemption is available to all employee receiving a value of any travel concession or assistance from the employer for himself or family member.
For non govt employee :- least of the following
1) Earned Leave ( No. of month ) * Average monthly Salary.
2) 10 * Average monthly salary.
3) Rs 3,00,000.
4) Actual amount received.
Perquisites by Govt to its employees
All the perquisites paid by government to its employees ( who are citizen of India) for services rendered outside India.
Tax on perquisites paid by employer
Employer paying tax of employee on his behalf as a non-monetary perquisites is exempt in hands of employee.
Section 10 (13a)
allowance received by employee from his employer in lieu of rent paid by him for rental accommodation is exempt to least of following:-
1) Excess of rent paid - 10% of salary,
2) 50 % of salary due to assessee,
3) Actual amount received.
Here Salary = Basic +DA ( if part of retirement benefit) + turnover based commission ( if any).
Income from UTI and other Mutual Funds
1) Dividend income covered by section 115-O,
2) Income received by unit holder of UTI,
3) Income received for unit of mutual fund,
4) Income earned from units of specified companies.
Income from Tax free Mutual Fund
Any Income received from mutual fund registered under SEBI act or regulations made there-under, mutual fund set up by public sector bank, or a public financial institution, authorized by RBI.
These exemptions are available subject to provisions of section 115R to 115T )
Section 10 (23DA)
Distributed Income from Securitization trust to its investor is exempt.
Section 10 (36)
Long term capital gain ( held for more then 12 months ) on sale of eligible share.
Section 10 (37)
Capital gain on sale of agricultural land.
Section 10 (38)
LTCG on sale of shares and securities ( equity share or unit of business trust / equity oriented mutual fund ) on which STT has been paid.
For article on Chapter VI-A deductions :- Click Here
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